A Problem That Can Arise in Using Trade Protectionism to Develop

question 7

Multiple Choice

A problem that can arise in using trade protectionism to develop international competitiveness for a domestic industry is that ________.

• A)it is difficult to identify industries that have a high probability of reaching competitiveness
• B)assistance should be given only if entry barriers to new firms are very low
• C)the protecting countries lose too much revenue from import duties
• D)a short product life cycle makes the industry quickly noncompetitive

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Definitions:

Conclusions

The summary of findings or the final arguments presented after an analysis or discussion.

Apparatuses

A set of materials or equipment designed for a particular use or function.

Keynes

John Maynard Keynes was a British economist whose ideas fundamentally changed the theory and practice of macroeconomics and the economic policies of governments, especially his advocacy for active government intervention to stabilize economies.

The Classicals

A group of economists in the 18th and 19th centuries, including Adam Smith and David Ricardo, who developed theories about how economies function.